CPTPP Starts Today

Today the Comprehensive and Progressive Trans-Pacific Partnership of 11 Pacific Rim nations takes effect. Canadians seem happy with the deal, particularly with the idea that Canada saw a good thing that the USA abandoned. A lot of Canadians see Trump as an idiot. This giant impetuous child who does foolish things. Not this Canadian. Yes, Trump is impulsive almost beyond belief, but he is canny. You don’t get to where he has gotten through stupidity.

The USA doesn’t need free trade with Asia. The USA doesn’t need tariffed trade with Asia either. In short, the USA doesn’t need trade with Asia at all.  Nor with anyone else. The USA is a pretty self-sufficient economy. It can basically produce its own consumption. It is the only major nation that could go it alone without a big reduction in living standards.

The odd thing is that the USA is the only nation who could reasonably absorb the exports of the world, and this has happened at a time when it doesn’t really need them.  I think we are going to see growing insulation of the USA from the World economy. I suspect that eventually, the USA is going to tire of spending money projecting power around the world and will leave the other nations to fight out their differences. That’s going to be a tough time for the rest of the world. The global unity thing that is going on now is at risk.  Maybe multi-national corporations will hold the sea lanes open. I suspect not.